Hi
Well I had a good evening tinkering on the 126 last night, it now starts, runs and drives nicely (aside from the clonking at the front end caused by a shot kingpin).
The non sparking was discovered to be due to a problem within the distributor, which was only discovered on changing the points.
The plastic block into which the coil earth, condenser and points spring connect to had snapped and the points spring was earthing out onto the body of the distributor. Luckily in my quality street tin of spares that came with the car, a new plastic insulator block was present. After stripping the points out and fitting of new points, condenser, insulator plus a good spray of WD 40 over the advance weights to clean some of the crud out, the little thing started first time and runs as sweet as a nut.
Rusty's vinegar trick with the carb has played dividends too as there is no bunny hopping or poor running as yet. Its like a different car.
So now just the front suspension to sort out and it might pass an MOT.